Mount Isa urges rethink as water dividends dry up

Mount Isa Mayor Tony McGrady is confident he can reach agreement with Queensland Water Minister Mark McArdle over the payment of water dividends to the council.

In the past, the council has received a share of the dividend earned by the Mount Isa Water Board but the State Government says that will no longer apply and it will take the share instead.

Mr McGrady says last year the council earned more than $2 million from the dividends.

"The Government made it perfectly clear they intend to reduce and to cut back on this dividend," he said.

"The negotiations that I'll be having is when, how long, what period of time, before this comes into play and obviously I'll be fighting to have this as late as possible for five years, that's my hope."

He says any loss will impact on ratepayers.

"I'm not going to get involved in criticising the Government or criticising the Minister," he said.

"I'm going to go there, I'm going to explain the plight and the additional costs which would be borne by the ratepayers of this city if they abolish these charges.

"I'm quietly confident that we can sit down, we can discuss this and we can come to a satisfactory agreement."